PROGRAMMATIC ADVERTISING

Open Bidding

Understand how Open Bidding works with Google Ad Manager, how multiple demand partners can compete for publisher inventory, and how publishers can use demand competition to support yield optimization.

What is Open Bidding?

Open Bidding is a server-side auction approach integrated with Google Ad Manager that allows participating demand partners to compete for eligible publisher inventory.

Open Bidding

Open Bidding is a programmatic monetization solution available within Google Ad Manager. It allows publishers to invite eligible third-party demand partners to compete in an auction for their advertising inventory.

Instead of relying on a single demand source, participating demand partners can submit bids for an impression. Google Ad Manager can then use the auction outcome as part of its ad-serving decision.

Open Bidding is different from client-side header bidding because the demand auction is handled through server-side infrastructure rather than requiring every demand partner to make a direct browser request.

Why Do Publishers Use Open Bidding?

Open Bidding can give publishers another way to bring demand sources into competition for eligible advertising inventory.

More Demand Competition

Publishers can work with multiple participating demand partners instead of depending entirely on a single source of demand.

The Main Idea

Eligible demand partners can submit bids for available inventory. The resulting competition can create additional opportunities for publishers to improve yield and monetization.

How Demand Partners Compete

A simplified view of how multiple demand sources can compete for the same publisher impression.

Publisher Ad inventory
→
Google Ad Manager Auction request
Demand Partner A Bid submitted
Demand Partner B Bid submitted
→
Winning Demand Eligible winning bid

How Open Bidding Works

Open Bidding uses server-side communication to allow participating demand partners to compete for eligible inventory.

User Opens webpage
→
Ad Request Inventory becomes available
→
Google Ad Manager Initiates auction process
→
Demand Partners Submit eligible bids
→
Auction Bids are evaluated
→
Ad Server Final ad decision

Open Bidding Auction Example

A simplified example showing different demand partners competing for the same impression.

Demand Partner A
$2.20 CPM
Demand Partner B
$3.40 CPM — WINNING BID
Demand Partner C
$2.75 CPM
Demand Partner D
$1.95 CPM
The winning demand source is determined according to the applicable auction and ad-serving setup. This simplified example is for illustration only.

Open Bidding vs Header Bidding

Both approaches allow multiple demand sources to compete, but their auction architecture and implementation can differ.

Feature Open Bidding Header Bidding
Auction environment Server-side infrastructure Client-side or server-side
Ad server integration Closely integrated with Google Ad Manager Bid results are typically passed to the ad server
Browser involvement Lower direct demand-request involvement Can be higher for client-side implementations
Demand competition Participating demand partners Configured demand partners
Main consideration Demand availability and auction performance Latency, configuration and demand coverage
Publisher setup Configured through supported Google Ad Manager functionality Usually requires a header bidding solution or wrapper

Benefits of Open Bidding

Open Bidding can provide publishers with additional opportunities to manage and optimize advertising demand.

$

Revenue Opportunity

Additional demand competition can create opportunities to improve the value of available advertising inventory.

BID

Demand Competition

Multiple participating demand partners can compete for eligible publisher inventory.

YLD

Yield Optimization

Publishers can evaluate demand performance and use competition as part of their yield optimization strategy.

SSP

More Demand Access

Open Bidding can connect publishers with supported third-party demand sources.

DATA

Performance Analysis

Publishers can analyze demand performance, auction results and monetization trends.

OPT

Monetization Optimization

Publishers can optimize demand configurations based on inventory, performance and revenue data.

Key Open Bidding Terms

Open Bidding A server-side auction approach available through Google Ad Manager.
Google Ad Manager Google's ad management platform used by publishers to manage advertising inventory.
Demand Partner A participating demand source that can submit bids for eligible inventory.
Bid The value submitted by a demand source for an advertising opportunity.
Auction The process through which eligible demand competes for inventory.
Yield The value generated from available advertising inventory.
Floor Price A minimum value that may be applied to eligible inventory.
Ad Inventory Advertising opportunities available for buyers and demand sources.

Explore More Programmatic Advertising

Continue learning about header bidding, Google Ad Manager, SSPs, DSPs, RTB, ad exchanges, CTV and the wider programmatic advertising ecosystem.

Explore Header Bidding →